National Insurance Contributions (NIC) – Rates and Allowances
- Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
- Employers pay Class 1 NIC in accordance with the table below.
- Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
- Employees’ Class 1 NIC stop when they reach their State Pension age. The employer’s contribution continues.
Employees – Class 1 – 2023/24
| Earnings per week | % |
|---|---|
| Up to £242* | Nil |
| £242.01 – £967 | 12 |
| Over £967 | 2 |
Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £242 per week.
Employers – Class 1 – 2023/24
| Earnings per week | % |
|---|---|
| Up to £175 | Nil |
| Over £175 | 13.80 |
Other National Insurance payable by employers
Class 1A – 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination payments in excess of £30,000
Class 1B – 13.8% on taxable PAYE Settlement Agreements
Self-employed – Class 2 and 4
- A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
- Class 2 NIC stop when a person reaches State Pension age
- Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
Self-employed – Class 2 – 2022/23
| Flat rate per week | £3.45 |
| Small Profits Threshold | £6,725 per year |
| Lower Profits Limit | £12,570 |
For 2023/24 the point at which the self-employed person starts to pay Class 2 NICs is £12,570. This means those with profits between the Small Profits Threshold and the Lower Profits Limit will not pay Class 2 NICs, but will still be able to access entitlement to contributory benefits. A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.
Class 4 – 2023/24
| Annual profits | % |
|---|---|
| Up to £12,570 | Nil |
| £12,570.01 – £50,270 | 9 |
| Over £50,270 | 2 |
Class 3
- A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
- Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.
Class 3 – 2023/24
Flat rate per week £17.45
- Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
- Employers pay Class 1 NIC in accordance with the table below.
- Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
- Employees’ Class 1 NIC stop when they reach their State Pension age . The employer’s contribution continues.
Employees – Class 1 – 2022/23
| Earnings per week | % (from 6/11/22) | % (to 5/11/2022) |
|---|---|---|
| Up to £242* | Nil | Nil |
| £242.01 – £967 | 12 | 13.25 |
| Over £967 | 2 | 3.25 |
*£190 until 5 July 2022
Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £190 per week.
Employers – Class 1 – 2022/23
| Earnings per week | % (from 6/11/22) | % (to 5/11/2022) |
|---|---|---|
| Up to £175 | Nil | Nil |
| Over £175 | 13.80 | 15.05 |
Other National Insurance payable by employers
Class 1A – 14.53% on broadly all taxable benefits provided to employees and on certain taxable termination payments in excess of £30,000
Class 1B – 14.53% on taxable PAYE Settlement Agreements
Self-employed – Class 2 and 4
- A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
- Class 2 NIC stop when a person reaches State Pension age
- Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
Self-employed – Class 2 – 2022/23
| Flat rate per week | £3.15 |
| Small Profits Threshold | £6,725 per year |
| Lower Profits Limit | £11,908 |
For 2022/23 the point at which the self-employed person starts to pay Class 2 NICs will increase to £11,908. This means those with profits between the Small Profits Threshold and the Lower Profits Limit will not pay Class 2 NICs, but will still be able to access entitlement to contributory benefits. A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.
Class 4 – 2022/23
| Annual profits | % |
|---|---|
| Up to £11,908 | Nil |
| £11,908.01 – £50,270 | 9.73 |
| Over £50,270 | 2.73 |
Class 3
- A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
- Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.
Class 3 – 2022/23
Flat rate per week £15.85
- Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
- Employers pay Class 1 NIC in accordance with the table below.
- Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
- Employees’ Class 1 NIC stop when they reach their State Pension age. The employer’s contribution continues.
Employees – Class 1 – 2021/22
| Earnings per week | % |
|---|---|
| Up to £184 | Nil |
| £184.01 – £967 | 12 |
| Over £967 | 2 |
Entitlement to state pension and other contribution-based benefits is retained for earnings between £120 and £184 per week.
Employers – Class 1 – 2021/22
| Earnings per week | % |
|---|---|
| Up to £170 | Nil |
| Over £170 | 13.8 |
Other National Insurance payable by employers
Class 1A – 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000
Class 1B – 13.8% on taxable PAYE Settlement Agreements
Self-employed – Class 2 and 4
- A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
- Class 2 NIC stop when a person reaches State Pension age
- Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
Self-employed – Class 2 – 2021/22
| Flat rate per week | £3.05 |
| Small Profits Threshold | £6,515 per year |
No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.
Class 4 – 2021/22
| Annual profits | % |
|---|---|
| Up to £9,568 | Nil |
| £9,568.01 – £50,270 | 9 |
| Over £50,270 | 2 |
Class 3
- A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
- Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.
Class 3 – 2021/22
Flat rate per week £15.40
- Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
- Employers pay Class 1 NIC in accordance with the table below.
- Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold of £962.
- Employees’ Class 1 NIC stop when they reach their State Pension age . The employer’s contribution continues.
Employees – Class 1 – 2020/21
| Earnings per week | % |
|---|---|
| Up to £183 | Nil |
| £183.01 – £962 | 12 |
| Over £962 | 2 |
Entitlement to state pension and other contribution-based benefits is retained for earnings between £120 and £183 per week.
Employers – Class 1 – 2020/21
| Earnings per week | % |
|---|---|
| Up to £169 | Nil |
| Over £169 | 13.8 |
Other National Insurance payable by employers
Class 1A – 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000
Class 1B – 13.8% on taxable PAYE Settlement Agreements
Self-employed – Class 2 and 4
- A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
- Class 2 NIC stop when a person reaches State Pension age
- Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
Self-employed – Class 2 – 2020/21
| Flat rate per week | £3.05 |
| Small Profits Threshold | £6,475 per year |
No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.
Class 4 – 2020/21
| Annual profits | % |
|---|---|
| Up to £9,500 | Nil |
| £9,500.01 – £50,000 | 9 |
| Over £50,000 | 2 |
Class 3
- A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
- Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.
Class 3 – 2020/21
Flat rate per week £15.30